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Question: Consider these two scenarios:
a. You have made a reservation to spend the weekend at the coast. To get the reservation, you had to make a nonrefundable $50 deposit. As the weekend approaches, you feel a bit out of sorts. On balance, you decide that you would be happier at home than at the coast. Of course, if you stay home, you forfeit the deposit. Would you stay home or go to the coast? What arguments would you use to support your position?
b. You have decided to spend the weekend at the coast and have made a reservation at your favorite resort. While driving over, you discover a new resort. After looking it over, you realize that you would rather spend your weekend there. Your reservation at the coast can be canceled easily at no charge. Staying at the new resort, however, would cost $50 more. Would you stay at the new resort or continue to the coast?
Are your decisions consistent in parts a and b? Explain why or why not?
Write about why you think that the diseconomies of scale present in the large banks has not lead to smaller and more nimbler banks to gain market share and force the banks to divest and become smaller.
Draw a network diagram of the optimal shipments. Include in the diagram the optimal quantities, unit transportation costs, and fixed supplies and demands.
What is shirking? If the managers of a firm are attempting to maximize its profits, will they have an incentive to limit shirking? How might they go about doing so?
Despite the city's positive response to the coffee shop's renovation, other businesses in the area have not followed suit in renovating the many decrepit buildings and abandoned lots. How might the presence of an externality be in part the cause o..
What happens to the indifference curves when a household's income is reduced and how does a budget constraint explain consumer choices when used in conjunction with indifference curves?
Explain why each of the factors may influence the own price elasticity of demand for a commodity - Consumer preferences, that is, whether consumers regard the commodity as a 'luxury'' or a 'necessity''.
assume you have been hired as a managing consultant by a company to offer some advice that will help it make a decision
If you were the Minister for Agriculture in the Western Australian Government, and the Grain Industry Association of WA asked you to support their members by imposing a legal minimum price, would you support or reject their request. Use an economi..
At the same time, the dollar depreciated. What is the connection? (Hint: The United States borrows mostly in dollars but has substantial foreign currency assets.)
How might the calculation of the margin of safety be used for decision-making during a period of economic downturn? How might the degree of operating leverage be used for decision-making during a period of economic downturn?
1)Describe three examples of how isoquants and isocosts are used in industry. How would this vary when applying these to services?
Describe recent financial crises and describe the effect that destabilized credit, mortgage, derivative, and insurance markets have had on national economies and assess the stabilization policies implemented to address them.
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